Ontario's Digital Platform Workers' Rights Act is coming into force in July 2025

At a glance

• On 5 September 2024, the Ontario government proclaimed that the Digital Platform Workers’ Rights Act, 2022 (Act) and its associated regulation will come into force on 1 July 2025.
• It will apply to workers and operators of digital platforms in Ontario, regarless of their employment status under the Employment Standards Act (ESA).
• The Act creates a number of new obligations for operators including record keeping, establishing pay periods and paying the minimum wage. 
• Compliance officers will enforce the Act, with penalties for violations ranging from fines to imprisonment for individuals and corporations.

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On 5 September 2024, the Ontario government proclaimed that the Act and its associated regulation will come into force on 1 July 2025. The Act will establish rights for workers who perform 'digital platform work', as defined under the Act, regardless of whether those workers are employees under the ESA. Businesses to whom the Act applies should make themselves aware of their new obligations.

Application

The Act applies to both workers who perform digital platform work in Ontario and the operators of these digital platforms.

Important definitions under the Act include:

• Digital platform: An online platform that allows workers to choose to accept or decline digital platform work.
• Operators: A person that facilitates, through the use of a digital platform, the performance of digital platform work by workers.
• Digital platform work: The provision of for payment ride share, delivery, courier or other prescribed services by workers who are offered work assignments by an operator through the use of a digital platform.

Neither workers nor operators can contract out of or waive the rights established under the Act, unless there is a provision in a contract or another Act that directly relates to the same subject and provides a greater benefit to the worker.

Operator’s obligations

The Act creates a number of new obligations for operators, including:

• Record keeping: Operators must record, retain, and keep readily available for inspection all prescribed information relating to each worker who accesses the operator’s digital platform including, but not limited to, the worker’s name and address, the dates on which the worker was given access to the digital platform for the purpose of performing work, the dates and times when the worker performed work assignments and amounts paid to the worker for work assignments. These records must be retained for three years after the worker’s access to the digital platform is terminated.
• Information: Within 24 hours after a worker is given access to an operator’s digital platform for the purpose of accepting or declining work, operators must provide, in writing, information as prescribed by the Act. This information includes, but is not limited to, a description of how the worker’s pay will be calculated, the recurring pay period and pay day for the worker, and if and how any factors are used to determine whether work assignments are offered to workers.
• Recurring pay period: Operators must establish a recurring pay period and recurring pay day for workers, on which day they must pay all amounts earned during the pay period, including tips and other gratuities.
• Minimum wage: Operators must pay minimum wage, as prescribed under the ESA, to a worker for each work assignment. The minimum wage paid to workers does not include any tips or gratuities paid in respect of a work assignment.
• Earned tips and gratuities: Operators must not withhold or make deductions from any amounts earned by workers, including tips or gratuities, unless authorised under the Act.
• Notice of removal: Operators must not remove a worker’s access to the digital platform without first providing a written explanation of the reasons why the worker’s access is being removed. If the worker’s access is removed for a period of 24 hours or longer, operators must provide the worker with two weeks written notice of the removal, unless the worker:
  
  • is guilty of willful misconduct;
  • is removed due to public safety concerns;
  • is unable to legally perform digital platform work under applicable federal or provincial legislation, or municipal by-law; or
  • must otherwise be removed as required by law.
• Dispute resolution: Operators and workers must resolve all of their disputes in Ontario.
• Reprisal: Operators are prohibited from engaging in reprisal against a worker and cannot intimidate or penalise or attempt or threaten to intimidate or penalise a worker, for inquiring or enforcing their rights under the Act.

Enforcement

The Act provides for a complaints process that is similar to the existing complaints process for employees under the ESA. If a worker believes that the Act has or is being contravened, they may file a complaint with the Ministry of Labour, Immigration, Training and Skills Development.

Compliance officers will be responsible for enforcing the Act, and will have similar powers and duties as employment standards officers under the ESA.

Operators should be aware of the penalties, fines and quasi-criminal offences they may face for contravention of the Act.

For an individual, these generally include:

• penalties for contraventions issued by a compliance officer of CAD250 for a first offence, CAD500 for a second offence in a three-year period and CAD1,000 for a third or subsequent offence in a three-year period; and
• quasi-criminal offences, punishable by a fine of up to CAD50,000 for an offence and / or up to 12 months’ imprisonment.

For a corporation, these generally include:

• penalties for contraventions issued by a compliance officer of CAD15,000 for a first offence, CAD25,000 for a second offence in a three-year period, and CAD50,000 for a third or subsequent offence in a three-year period; and
• quasi-criminal offences, punishable by a fine of up to CAD100,000 for a first offence, CAD250,000 for a second offence and CAD500,000 for a third or subsequent offence.

Takeaways

A business that qualifies as an operator under the Act should be proactive and become familiar with these new obligations prior to the Act coming into force on 1 July 2025.

For more information on the Act and how it may impact your business please contact any member of our Canadian Employment and Labour Law Service Group listed here.